An Update on Overdrafts

Probably me pointing out offering overdraft to people not using it isn’t helpful testing.
But that’s my guess.
Interestingly, I got the offer after Tristan’s reply & after a month where nearly reaching 0 near the end of the month. No request put in - so they are still slowing enroling people I guess.

Hey all, I’ve just removed a few posts that were taking this thread a bit off-topic.

We know it’s been a while since our last update on overdrafts, and hopefully we’ll have some more info for you soon. Thanks for your patience in the meantime.


Just like to say that this is not accurate, I’ve never been into my overdraft on any account in my life, but got offered a Monzo overdraft last week.


We are expecting an overall response from Tristan tomorrow. This may give better insight into how things are getting on with the rollout.

It has been the absence of updates that has fuelled the speculations about approach, eligibility etc. I don’t for a second think Monzo are targeting customers more likely to use overdrafts/incur fees.


2/3rds (50p versus 75p). 50p is still an outrageous amount to charge for going overdrawn by £30 for a day.


If that’s true, might Monzo have a problem with no one using the overdrafts, meaning they don’t make the revenue that they’re counting on having in the short term?


Here is the real rub, I have an overdraft facility equal to my monthly income from my legacy bank, which is a standard yardstick,. I intend to transfer across when CASS comes but if I do CASS and then I’m not eligible for an overdraft with monzo then my legacy bank cuts my overdraft because there’s no income in that account anymore. This is a catch 22 situation. Why can’t we have an ‘in principle’ decision based on you bringing your income to monzo.

1 Like

Is this something that you actualy need with Monzo

If you read this thread in its entirety you will meet some interesting thoughts about overdrafts

I suppose the answer is no, but I’m used to having it, I usually keep my account in good order but sometimes enthusiastic spending (example buying a good deal holiday or tix for a popular music artist) I don’t have time to think about crediting my account and go into my overdraft. I could do what others do and have my overdraft in my account but then I like to leave my account empty nearly so someone doesn’t go on a contactless 30 spending spree if I lose it. I would like a pot which would be open to selective company’s say see tickets Ticketmaster and my holiday then if I’m enthusiastic I can spend a pot without thinking hope that’s clear. That’s why I’m reluctant to ditch my main account because using monzo as a prepay card suited me well. I know if they introduced fees for top ups that would make me move

That all sounds like very good financial housekeeping

I for one like to see that buffer for the totally unexpected like car breakdown or washing machine needing replacement etc

We will just have to see how the roll out programme progresses

I think I’ve said enough about overdrafts and will leave it for others to bash around

One answer is to keep the overdraft amount in my legacy account and just use that for impulse buying. I know though that once my legacy bank stops getting regular income and direct debits go and it gets used occasionally they won’t be happy and try to close me down

I totally agree and this is something that I have pointed out in the past

I will be running my legacy bank until things improve with Monzo, which I have no doubt will happen eventually.

1 Like

It is preferable to have an overdraft facility with monzo though as a credit controller I know that if you use your overdraft say once every now and then so it’s not a bad thing as monzo are getting profitability out of you and conversely this makes you better as a risk to lend to. That’s what goes into my thinking on an impulse purchase.


All of us have to evaluate the offer. For me no joint accounts is the deal breaker. If you require the safety net of an overdraft and Monzo can’t offer it then wait until they are a fully developed bank and can offer overdrafts to your requirements. For me Monzo has not really developed much past the prepaid days, but time will tell.

1 Like

Beware, if you use the full Current Account Switch Service to transfer your direct debits to Monzo, your old account will be closed automatically as that is part of the switch. There is no reason, though, you can’t wait to do the switch until after any overdraft is confirmed at Monzo.


@anon81274823 j06 @j06 :+1:

All very valid points and also that in respect of @dawntrespass credit controllers point of view :thinking:

We will just have to wait and see how the roll out programme runs

It’s nice to see people with similar financial opinions at long last

There is a partial service you can use which won’t close your old account.

We have no criteria for you opening your Monzo account so feel free to keep any other accounts open for your needs :+1:


Do you lose any benefits by going partial?

@WillP79 this is from BACS website;



Hmmm…looks a bit ropey. Never mind - luckily I have two accounts with my old bank, so I can sacrifice one. Shame though- it was my student account, and has a cool account number!